History of the Bank
The Federated States of Micronesia Development Bank (FSMDB) is a subcomponent unit of the National Government of the Federated States of Micronesia (FSM). It was chartered in 1979 by the First Congress of the Federated States of Micronesia and commenced operations in 1980. It did not, however, start actual lending until 1982. In 1994, the enabling law that created the bank was amended to reorganize the structure of the bank to reflect that of a normal corporation with shareholders. The current shareholders are the National Government, Chuuk State Government and Kosrae State Government.
Since its creation in 1979 by the First FSM Congress, the FSMDB has gone through certain structural reforms to achieve a higher level of efficiency and effectiveness as an independent financial institution in the FSM, conducting its activities within the framework of the FSM National and State governments’ general economic development plans, policies and priorities.
The FSMDB was created to engage in all banking functions that will assist in the economic advancement of the FSM. In the coming years, the FSMDB intends to remain the major player in the provision of capital funds to eligible and viable projects to stimulate the growth and to accelerate the development of the private sector of the FSM economy.
Today, in an effort to achieve its statutory role, the FSMDB is mandated to:
- Mobilize additional financial resources for development from both within and outside the FSM;
- Provide short, medium and long-term loans for projects, with special emphasis on and attention to the needs of the FSM;
- Provide assistance and services for project identification and project formulation and to provide investment studies;
- Administer trust funds and special funds available to the FSM on a grant or loan basis; and,
- Foster economic activities and cooperate with other lending institutions within and outside of the FSM in supporting activities of its development.
The FSMDB maintains offices in all of the four State Islands (Pohnpei Headquarters, Kosrae, Chuuk and Yap.) These four islands constitute the Federated States of Micronesia. Pohnpei, as the Capital of the FSM, serves host to the Bank’s Headquarters Office.
FSMDB CHARTERED BY CONGRESS OF THE FSM
The first Congress of the Federated States of Micronesia chartered the Development Bank of the Federated States of Micronesia in 1979 to engage in all banking functions that will assist in the economic advancement of the FSM. The Bank began operations in 1980.
FSMDB Begins Lending
The FSM Development Bank began lending to customers throughout the FSM.
FSM Enabling Legislation Changed
The enabling law that created the Bank is amended to reorganize the structure of FSMDB and to reflect that of a normal corporation with shareholders.
FSMDB Ongoing Operations
Today, the FSMDB remains the major player in the provision of capital funds to eligible and viable projects to stimulate the growth and to accelerate the development of the private sector of the FSM economy.